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Equity Residential Reports Second Quarter 2024 Results

Guidance Updated on Strong Operating Fundamentals

Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2024.

Second Quarter 2024 Results

All per share results are reported as available to common shares/units on a diluted basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

 

 

2024

 

2023

 

$ Change

 

% Change

Earnings Per Share (EPS)

 

$

0.47

 

 

$

0.37

 

 

$

0.10

 

 

 

27.0

%

Funds from Operations (FFO) per share

 

$

0.94

 

 

$

0.93

 

 

$

0.01

 

 

 

1.1

%

Normalized FFO (NFFO) per share

 

$

0.97

 

 

$

0.94

 

 

$

0.03

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

2023

 

$ Change

 

% Change

Earnings Per Share (EPS)

 

$

1.24

 

 

$

0.92

 

 

$

0.32

 

 

 

34.8

%

Funds from Operations (FFO) per share

 

$

1.80

 

 

$

1.78

 

 

$

0.02

 

 

 

1.1

%

Normalized FFO (NFFO) per share

 

$

1.91

 

 

$

1.82

 

 

$

0.09

 

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Recent Highlights

  • Same store revenue increased 2.9% for the second quarter of 2024 compared to the second quarter of 2023, driven by strong demand and modest supply across most of our markets. Same store expense increased 2.7% with low growth in our primary expense categories. Same store Net Operating Income (NOI) increased 3.0%.
  • The Company raised the guidance midpoint for its same store revenues by 70 basis points to 3.2% driven by better Physical Occupancy and Blended Rate. The Company also lowered the guidance midpoint for its same store expenses by 100 basis points to 3.0% and increased the guidance midpoint for its same store NOI by 145 basis points to 3.25%.
  • Subsequent to the end of the second quarter of 2024, the Company acquired two properties consisting of 644 apartment units, located in Atlanta and Dallas/Ft. Worth, for an aggregate acquisition price of $216.8 million. The Company is also under contract to acquire an additional property consisting of 202 apartment units, located in Denver, for an acquisition price of $77.0 million.

"We are pleased to report results that exceeded our expectations and to be seeing positive forward momentum in our business which led us to significantly improve our guidance," said Mark J. Parrell, Equity Residential's President and CEO. "Our portfolio continues to benefit from steady demand from our well-employed, higher earning renter demographic, elevated single family housing costs and manageable new apartment supply across most of our markets. We also continue to see positive customer satisfaction and employee engagement results. I commend my colleagues across the Company for their work in obtaining these outstanding results."

Full Year 2024 Guidance

The Company has revised its guidance for its full year 2024 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

 

 

Revised

 

Previous

 

Change at Midpoint

Same Store (includes Residential and Non-Residential):

 

 

 

 

Physical Occupancy

 

96.2%

 

95.9%

 

0.3%

Revenue change

 

2.9% to 3.5%

 

2.0% to 3.0%

 

0.7%

Expense change

 

2.5% to 3.5%

 

3.5% to 4.5%

 

(1.0%)

Net Operating Income (NOI) change

 

3.0% to 3.5%

 

1.0% to 2.6%

 

1.45%

 

 

 

 

 

 

 

EPS

 

$3.04 to $3.10

 

$2.91 to $3.01

 

$0.11

Growth at midpoint vs. 2023 actual

 

39.5%

 

34.5%

 

 

FFO per share

 

$3.72 to $3.78

 

$3.74 to $3.84

 

$(0.04)

Growth at midpoint vs. 2023 actual

 

0.0%

 

1.1%

 

 

Normalized FFO per share

 

$3.86 to $3.92

 

$3.80 to $3.90

 

$0.04

Growth at midpoint vs. 2023 actual

 

2.9%

 

1.9%

 

 

The change in the full year 2024 EPS guidance range is due primarily to higher expected property sale gains, partially offset by higher expected depreciation expense, higher expected other expenses and the items described below.

The change in the full year 2024 FFO per share guidance range is due primarily to higher expected other expenses, partially offset by the items described below.

The change in the full year 2024 Normalized FFO per share guidance range is due primarily to:

 

 

Expected

Positive/(Negative)

Impact

 

 

Revised Full Year 2024 vs.

Previous Full Year 2024

Same store NOI

 

$

0.07

 

Corporate overhead (1)

 

 

(0.02

)

Other items

 

 

(0.01

)

Net

 

$

0.04

 

(1)

Corporate overhead includes property management and general and administrative expenses.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Results Per Share

The changes in EPS for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 are due primarily to higher property sale gains, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

 

 

Positive/(Negative) Impact

 

 

 

Second Quarter 2024 vs.

Second Quarter 2023

 

 

June YTD 2024 vs.

June YTD 2023

 

Same store NOI

 

$

0.04

 

 

$

0.10

 

Lease-Up NOI

 

 

 

 

0.01

 

2024 and 2023 transaction activity impact on NOI, net

 

(0.01

)

 

 

(0.02

)

Corporate overhead

 

 

(0.01

)

 

 

(0.02

)

Other items

 

 

0.01

 

 

 

0.02

 

Net

 

$

0.03

 

 

$

0.09

 

Same Store Results

The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).

 

 

Second Quarter 2024 vs.

Second Quarter 2023

 

Second Quarter 2024 vs.

First Quarter 2024

 

June YTD 2024 vs.

June YTD 2023

Apartment Units

 

77,054

 

77,893

 

77,054

Physical Occupancy

 

96.4% vs. 95.9%

 

96.4% vs. 96.3%

 

96.3% vs. 95.9%

 

 

 

 

 

 

 

Revenues

 

2.9%

 

0.5%

 

3.5%

Expenses

 

2.7%

 

(2.6%)

 

2.0%

NOI

 

3.0%

 

2.0%

 

4.3%

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

 

 

Second Quarter 2024 vs.

Second Quarter 2023

 

Second Quarter 2024 vs.

First Quarter 2024

 

June YTD 2024 vs.

June YTD 2023

 

 

% Change

 

% Change

 

% Change

Same Store Residential Revenues-

 

 

 

 

 

 

 

 

comparable period

Lease rates

 

 

2.5

%

 

 

0.7

%

 

 

2.7

%

Leasing Concessions

 

 

(0.3

%)

 

 

0.0

%

 

 

(0.3

%)

Vacancy gain (loss)

 

 

0.4

%

 

 

(0.1

%)

 

 

0.4

%

Bad Debt, Net (1)

 

 

0.2

%

 

 

0.2

%

 

 

0.2

%

Other (2)

 

 

0.2

%

 

 

0.2

%

 

 

0.4

%

Same Store Residential Revenues-

 

current period

 

3.0

%

 

 

1.0

%

 

 

3.4

%

(1)

Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. See page 13 for more detail.

(2)

Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 77,054 same store apartment units):

 

 

Q2 2024

 

Q1 2024

Physical Occupancy

 

96.4%

 

96.3%

Percentage of Residents Renewing by quarter

57.6%

 

61.1%

 

 

 

 

 

New Lease Change

 

0.2%

 

(2.2%)

Renewal Rate Achieved

 

5.0%

 

4.7%

Blended Rate (1)

 

2.9%

 

1.6%

(1)

Blended Rates for Established Markets were 3.3% and 1.8% for Q2 2024 and Q1 2024, respectively. See page 17.

June 2024 Blended Rate improved relative to April and May 2024. July 2024 Blended Rate is performing in line with the second quarter of 2024 and is consistent with expectations for this time of year. Management expects the third quarter of 2024 Blended Rate to increase between 2.0% and 3.0% which reflects typical seasonal moderation after the prime leasing season.

Investment Activity

Subsequent to the end of the second quarter of 2024, the Company acquired two properties consisting of 644 apartment units, located in Atlanta and Dallas/Ft. Worth, for an aggregate acquisition price of $216.8 million. The Company is also under contract to acquire an additional property consisting of 202 apartment units, located in Denver, for an acquisition price of $77.0 million.

During the second quarter of 2024, the Company acquired a 160 apartment unit property, located in suburban Boston and completed in 2023, for approximately $62.6 million at an Acquisition Cap Rate of 5.7%. During the second quarter of 2024, the Company sold two properties - one in suburban Washington, D.C. and one in San Francisco - consisting of 327 total apartment units, for an aggregate sale price of approximately $85.5 million at a weighted average Disposition Yield of 6.2%. The average age of the properties sold in the second quarter of 2024 was approximately 35 years.

During the first six months of 2024, the Company acquired the one property in suburban Boston described above. Also during the first six months of 2024, the Company sold five properties consisting of 831 apartment units, for an aggregate sale price of approximately $334.0 million at a weighted average Disposition Yield of 5.7%.

Third Quarter 2024 Guidance

The Company has established guidance ranges for the third quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:

 

 

Q3 2024

Guidance

EPS

 

$0.49 to $0.53

FFO per share

 

$0.94 to $0.98

Normalized FFO per share

 

$0.96 to $1.00

The difference between the second quarter of 2024 actual EPS of $0.47 and the third quarter of 2024 EPS guidance midpoint of $0.51 is due primarily to higher expected property sale gains and the items described below.

The difference between the second quarter of 2024 actual FFO of $0.94 per share and the third quarter of 2024 FFO guidance midpoint of $0.96 per share is due primarily to the items described below.

The difference between the second quarter of 2024 actual Normalized FFO of $0.97 per share and the third quarter of 2024 Normalized FFO guidance midpoint of $0.98 per share is due primarily to:

 

 

Expected

Positive/(Negative)

Impact

 

 

Third Quarter 2024 vs.

Second Quarter 2024

Interest expense, net

 

$

(0.01

)

Corporate overhead

 

 

0.02

 

Net

 

$

0.01

 

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 299 properties consisting of 79,738 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Tuesday, July 30, 2024 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

Quarter Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,464,981

 

 

$

1,422,397

 

 

$

734,163

 

 

$

717,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

261,128

 

 

 

262,350

 

 

 

126,498

 

 

 

124,771

 

Real estate taxes and insurance

 

 

214,498

 

 

 

209,749

 

 

 

105,571

 

 

 

103,080

 

Property management

 

 

68,969

 

 

 

62,145

 

 

 

33,511

 

 

 

30,679

 

General and administrative

 

 

34,351

 

 

 

35,041

 

 

 

18,631

 

 

 

18,876

 

Depreciation

 

 

450,093

 

 

 

437,185

 

 

 

224,398

 

 

 

221,355

 

Total expenses

 

 

1,029,039

 

 

 

1,006,470

 

 

 

508,609

 

 

 

498,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

227,994

 

 

 

100,122

 

 

 

39,809

 

 

 

(87

)

Interest and other income

 

 

10,657

 

 

 

3,669

 

 

 

1,328

 

 

 

2,131

 

Other expenses

 

 

(45,123

)

 

 

(15,559

)

 

 

(13,385

)

 

 

(6,564

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(133,040

)

 

 

(131,991

)

 

 

(65,828

)

 

 

(65,590

)

Amortization of deferred financing costs

 

 

(3,836

)

 

 

(3,996

)

 

 

(1,918

)

 

 

(2,017

)

Income before income and other taxes, income (loss) from

 

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

492,594

 

 

 

368,172

 

 

 

185,560

 

 

 

146,421

 

Income and other tax (expense) benefit

 

 

(635

)

 

 

(634

)

 

 

(331

)

 

 

(336

)

Income (loss) from investments in unconsolidated entities

 

 

(3,372

)

 

 

(2,605

)

 

 

(1,674

)

 

 

(1,223

)

Net income

 

 

488,587

 

 

 

364,933

 

 

 

183,555

 

 

 

144,862

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(13,278

)

 

 

(11,613

)

 

 

(5,003

)

 

 

(4,554

)

Partially Owned Properties

 

 

(2,039

)

 

 

(2,082

)

 

 

(1,069

)

 

 

(1,105

)

Net income attributable to controlling interests

 

 

473,270

 

 

 

351,238

 

 

 

177,483

 

 

 

139,203

 

Preferred distributions

 

 

(902

)

 

 

(1,545

)

 

 

(355

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

470,924

 

 

$

349,693

 

 

$

177,128

 

 

$

138,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.24

 

 

$

0.92

 

 

$

0.47

 

 

$

0.37

 

Weighted average Common Shares outstanding

 

 

378,699

 

 

 

378,492

 

 

 

378,578

 

 

 

378,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.24

 

 

$

0.92

 

 

$

0.47

 

 

$

0.37

 

Weighted average Common Shares outstanding

 

 

390,548

 

 

 

391,063

 

 

 

390,542

 

 

 

391,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.35

 

 

$

1.325

 

 

$

0.675

 

 

$

0.6625

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

Quarter Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Net income

 

$

488,587

 

 

$

364,933

 

 

$

183,555

 

 

$

144,862

 

Net (income) loss attributable to Noncontrolling Interests – Partially

 

Owned Properties

 

(2,039

)

 

 

(2,082

)

 

 

(1,069

)

 

 

(1,105

)

Preferred distributions

 

 

(902

)

 

 

(1,545

)

 

 

(355

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

Net income available to Common Shares and Units

 

 

484,202

 

 

 

361,306

 

 

 

182,131

 

 

 

142,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

450,093

 

 

 

437,185

 

 

 

224,398

 

 

 

221,355

 

Depreciation – Non-real estate additions

 

 

(1,897

)

 

 

(2,259

)

 

 

(942

)

 

 

(1,103

)

Depreciation – Partially Owned Properties

 

 

(1,089

)

 

 

(1,055

)

 

 

(547

)

 

 

(510

)

Depreciation – Unconsolidated Properties

 

 

1,452

 

 

 

1,226

 

 

 

1,117

 

 

 

594

 

Net (gain) loss on sales of real estate properties

 

 

(227,994

)

 

 

(100,122

)

 

 

(39,809

)

 

 

87

 

FFO available to Common Shares and Units

 

 

704,767

 

 

 

696,281

 

 

 

366,348

 

 

 

363,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

1,369

 

 

 

1,993

 

 

 

821

 

 

 

661

 

Debt extinguishment and preferred share redemption (gains)

 

losses

 

 

1,444

 

 

 

47

 

 

 

 

 

 

47

 

Non-operating asset (gains) losses

 

 

(3,216

)

 

 

1,031

 

 

 

2,890

 

 

 

317

 

Other miscellaneous items

 

 

40,674

 

 

 

11,343

 

 

 

10,083

 

 

 

5,051

 

Normalized FFO available to Common Shares and Units

 

$

745,038

 

 

$

710,695

 

 

$

380,142

 

 

$

369,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

707,113

 

 

$

697,826

 

 

$

366,703

 

 

$

364,180

 

Preferred distributions

 

 

(902

)

 

 

(1,545

)

 

 

(355

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

$

704,767

 

 

$

696,281

 

 

$

366,348

 

 

$

363,407

 

FFO per share and Unit – basic

 

$

1.81

 

 

$

1.79

 

 

$

0.94

 

 

$

0.93

 

FFO per share and Unit – diluted

 

$

1.80

 

 

$

1.78

 

 

$

0.94

 

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

745,940

 

 

$

712,240

 

 

$

380,497

 

 

$

370,256

 

Preferred distributions

 

 

(902

)

 

 

(1,545

)

 

 

(355

)

 

 

(773

)

Normalized FFO available to Common Shares and Units

 

$

745,038

 

 

$

710,695

 

 

$

380,142

 

 

$

369,483

 

Normalized FFO per share and Unit – basic

 

$

1.91

 

 

$

1.82

 

 

$

0.98

 

 

$

0.95

 

Normalized FFO per share and Unit – diluted

 

$

1.91

 

 

$

1.82

 

 

$

0.97

 

 

$

0.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

389,380

 

 

 

389,942

 

 

 

389,271

 

 

 

390,032

 

Weighted average Common Shares and Units outstanding – diluted

 

390,548

 

 

 

391,063

 

 

 

390,542

 

 

 

391,187

 

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

ASSETS

 

 

 

 

 

 

Land

 

$

5,540,352

 

 

$

5,581,876

 

Depreciable property

 

 

23,004,377

 

 

 

22,938,426

 

Projects under development

 

 

188,283

 

 

 

78,036

 

Land held for development

 

 

64,781

 

 

 

114,300

 

Investment in real estate

 

 

28,797,793

 

 

 

28,712,638

 

Accumulated depreciation

 

 

(10,163,756

)

 

 

(9,810,337

)

Investment in real estate, net

 

 

18,634,037

 

 

 

18,902,301

 

Investments in unconsolidated entities1

 

 

341,871

 

 

 

282,049

 

Cash and cash equivalents

 

 

38,298

 

 

 

50,743

 

Restricted deposits

 

 

100,123

 

 

 

89,252

 

Right-of-use assets

 

 

450,796

 

 

 

457,266

 

Other assets

 

 

214,443

 

 

 

252,953

 

Total assets

 

$

19,779,568

 

 

$

20,034,564

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,634,838

 

 

$

1,632,902

 

Notes, net

 

 

5,351,461

 

 

 

5,348,417

 

Line of credit and commercial paper

 

 

170,884

 

 

 

409,131

 

Accounts payable and accrued expenses

 

 

114,413

 

 

 

87,377

 

Accrued interest payable

 

 

65,585

 

 

 

65,716

 

Lease liabilities

 

 

309,182

 

 

 

311,640

 

Other liabilities

 

 

292,424

 

 

 

272,596

 

Security deposits

 

 

69,848

 

 

 

69,178

 

Distributions payable

 

 

263,668

 

 

 

259,231

 

Total liabilities

 

 

8,272,303

 

 

 

8,456,188

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

327,641

 

 

 

289,248

 

Equity:

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

 

100,000,000 shares authorized; 343,100 shares issued and

outstanding as of June 30, 2024 and 745,600 shares issued

and outstanding as of December 31, 2023

 

 

17,155

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

 

1,000,000,000 shares authorized; 379,086,882 shares issued

and outstanding as of June 30, 2024 and 379,291,417

shares issued and outstanding as of December 31, 2023

 

 

3,791

 

 

 

3,793

 

Paid in capital

 

 

9,590,105

 

 

 

9,601,866

 

Retained earnings

 

 

1,357,922

 

 

 

1,437,185

 

Accumulated other comprehensive income (loss)

 

 

6,914

 

 

 

5,704

 

Total shareholders’ equity

 

 

10,975,887

 

 

 

11,085,828

 

Noncontrolling Interests:

 

 

 

 

 

 

Operating Partnership

 

 

204,032

 

 

 

202,306

 

Partially Owned Properties

 

 

(295

)

 

 

994

 

Total Noncontrolling Interests

 

 

203,737

 

 

 

203,300

 

Total equity

 

 

11,179,624

 

 

 

11,289,128

 

Total liabilities and equity

 

$

19,779,568

 

 

$

20,034,564

 

1 Includes $279.8 million and $220.2 million in unconsolidated development projects as of June 30, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of June 30, 2024

 

 

 

 

 

 

 

 

% of

Stabilized

 

Average

 

 

 

 

 

Apartment

 

Budgeted

 

Rental

Markets/Metro Areas

 

Properties

 

Units

 

NOI

 

Rate

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

58

 

 

 

14,732

 

 

 

17.3

%

 

$

2,936

 

Orange County

 

 

12

 

 

 

3,718

 

 

 

5.0

%

 

 

2,914

 

San Diego

 

 

12

 

 

 

2,878

 

 

 

4.0

%

 

 

3,127

 

Subtotal – Southern California

 

 

82

 

 

 

21,328

 

 

 

26.3

%

 

 

2,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

47

 

 

 

14,866

 

 

 

16.2

%

 

 

2,703

 

San Francisco

 

 

41

 

 

 

11,410

 

 

 

15.2

%

 

 

3,323

 

New York

 

 

34

 

 

 

8,536

 

 

 

14.2

%

 

 

4,610

 

Boston

 

 

27

 

 

 

7,237

 

 

 

11.9

%

 

 

3,595

 

Seattle

 

 

44

 

 

 

9,267

 

 

 

10.5

%

 

 

2,604

 

Subtotal – Established Markets

 

 

275

 

 

 

72,644

 

 

 

94.3

%

 

 

3,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

10

 

 

 

3,001

 

 

 

3.0

%

 

 

2,407

 

Atlanta

 

 

7

 

 

 

2,111

 

 

 

1.6

%

 

 

2,050

 

Dallas/Ft. Worth

 

 

4

 

 

 

1,241

 

 

 

0.7

%

 

 

1,912

 

Austin

 

 

3

 

 

 

741

 

 

 

0.4

%

 

 

1,798

 

Subtotal – Expansion Markets

 

 

24

 

 

 

7,094

 

 

 

5.7

%

 

 

2,152

 

Total

 

 

299

 

 

 

79,738

 

 

 

100.0

%

 

$

3,087

 

 

 

 

Properties

 

Apartment Units

Wholly Owned Properties

 

284

 

76,469

Partially Owned Properties – Consolidated

 

14

 

3,060

Partially Owned Properties – Unconsolidated

 

1

 

209

 

 

299

 

79,738

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Equity Residential

Portfolio Rollforward Q2 2024

($ in thousands)

 

 

 

Properties

 

Apartment

Units

 

Purchase Price

 

Acquisition

Cap Rate

3/31/2024

 

 

299

 

 

 

79,688

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties – Not Stabilized (1)

 

 

1

 

 

 

160

 

 

$

62,595

 

 

 

5.7

%

Unconsolidated Land Parcels (2)

 

 

 

 

 

 

 

$

33,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

Disposition

Yield

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

(2

)

 

 

(327

)

 

$

(85,500

)

 

 

(6.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Unconsolidated

 

 

1

 

 

 

209

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

8

 

 

 

 

 

 

 

6/30/2024

 

 

299

 

 

 

79,738

 

 

 

 

 

 

 

 

Portfolio Rollforward 2024

($ in thousands)

 

 

 

Properties

 

Apartment

Units

 

Purchase

Price

 

Acquisition

Cap Rate

12/31/2023

 

 

302

 

 

 

80,191

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties – Not Stabilized (1)

 

 

1

 

 

 

160

 

 

$

62,595

 

 

 

5.7

%

Unconsolidated Land Parcels (2)

 

 

 

 

 

 

 

$

33,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

Disposition

Yield

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

(5

)

 

 

(831

)

 

$

(334,000

)

 

 

(5.7

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Unconsolidated

 

 

1

 

 

 

209

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

9

 

 

 

 

 

 

 

6/30/2024

 

 

299

 

 

 

79,738

 

 

 

 

 

 

 

(1)

The Company acquired one property in the Boston market in the second quarter of 2024 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

(2)

The Company previously entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Boston, MA and suburban Seattle, WA. The joint ventures acquired their respective land parcels during the second quarter of 2024 for the total purchase price listed. The Company's total investment in these two joint ventures is approximately $53.0 million as of June 30, 2024

Equity Residential

Second Quarter 2024 vs. Second Quarter 2023

Same Store Results/Statistics Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

Statistics

Description

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Q2 2024

 

$

718,169

 

 

$

224,525

 

 

$

493,644

 

 

$

3,107

 

 

 

96.4

%

 

 

11.7

%

Q2 2023

 

$

697,784

 

 

$

218,681

 

 

$

479,103

 

 

$

3,031

 

 

 

95.9

%

 

 

11.6

%

Change

 

$

20,385

 

 

$

5,844

 

 

$

14,541

 

 

$

76

 

 

 

0.5

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

2.9

%

 

 

2.7

%

 

 

3.0

%

 

 

2.5

%

 

 

 

 

 

 

 

Second Quarter 2024 vs. First Quarter 2024

Same Store Results/Statistics Including 77,893 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

Statistics

Description

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Q2 2024

 

$

723,146

 

 

$

226,320

 

 

$

496,826

 

 

$

3,096

 

 

 

96.4

%

 

 

11.7

%

Q1 2024

 

$

719,329

 

 

$

232,422

 

 

$

486,907

 

 

$

3,069

 

 

 

96.3

%

 

 

8.6

%

Change

 

$

3,817

 

 

$

(6,102

)

 

$

9,919

 

 

$

27

 

 

 

0.1

%

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

0.5

%

 

 

(2.6

%)

 

 

2.0

%

 

 

0.9

%

 

 

 

 

 

 

 

June YTD 2024 vs. June YTD 2023

Same Store Results/Statistics Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

 

Statistics

 

Description

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

June YTD 2024

 

$

1,432,565

 

 

$

455,437

 

 

$

977,128

 

 

$

3,093

 

 

 

96.3

%

 

 

20.2

%

June YTD 2023

 

$

1,383,857

 

 

$

446,721

 

 

$

937,136

 

 

$

3,004

 

 

 

95.9

%

 

 

20.7

%

Change

 

$

48,708

 

 

$

8,716

 

 

$

39,992

 

 

$

89

 

 

 

0.4

%

 

 

(0.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

3.5

%

 

 

2.0

%

 

 

4.3

%

 

 

3.0

%

 

 

 

 

 

 

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

 

 

Second Quarter 2024 vs. Second Quarter 2023

 

Second Quarter 2024 vs. First Quarter 2024

 

June YTD 2024 vs. June YTD 2023

 

77,054 Same Store Apartment Units

 

77,893 Same Store Apartment Units

 

77,054 Same Store Apartment Units

 

Q2 2024

 

Q2 2023

 

Q2 2024

 

Q1 2024

 

June YTD 2024

 

June YTD 2023

Same Store Residential Revenues (GAAP Basis)

$

691,798

 

 

$

671,601

 

 

$

696,769

 

 

$

689,803

 

 

$

1,376,668

 

 

$

1,330,997

 

Leasing Concessions amortized

 

4,911

 

 

 

3,179

 

 

 

5,014

 

 

 

5,155

 

 

 

9,964

 

 

 

5,940

 

Leasing Concessions granted (2)

 

(3,702

)

 

 

(4,004

)

 

 

(3,815

)

 

 

(4,935

)

 

 

(8,620

)

 

 

(8,162

)

Same Store Residential Revenues with Leasing

 

Concessions on a cash basis

$

693,007

 

 

$

670,776

 

 

$

697,968

 

 

$

690,023

 

 

$

1,378,012

 

 

$

1,328,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

3.0

%

 

 

 

 

 

1.0

%

 

 

 

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

3.3

%

 

 

 

 

 

1.2

%

 

 

 

 

 

3.7

%

 

 

 

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

(2)

Concession usage is primarily concentrated in San Francisco, Los Angeles and Seattle.

Same Store Net Operating Income By Quarter

Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

Q2 2024

 

Q1 2024

 

Q4 2023

 

Q3 2023

 

Q2 2023

Same store revenues

 

$

718,169

 

 

$

714,396

 

 

$

706,419

 

 

$

702,251

 

 

$

697,784

 

Same store expenses

 

 

224,525

 

 

 

230,912

 

 

 

216,956

 

 

 

222,907

 

 

 

218,681

 

Same store NOI

 

$

493,644

 

 

$

483,484

 

 

$

489,463

 

 

$

479,344

 

 

$

479,103

 

Equity Residential

Same Store Residential Accounts Receivable Balances

Including 77,054 Same Store Apartment Units

($ in thousands)

 

Balance Sheet (Other assets):

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Residential accounts receivable balances

 

$

16,271

 

 

$

18,120

 

 

$

26,534

 

Allowance for doubtful accounts

 

 

(11,147

)

 

 

(13,063

)

 

 

(22,217

)

Net receivable balances

$

5,124

 

 

$

5,057

 

 

$

4,317

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

7,088

 

(1)

$

8,297

 

 

$

6,506

 

(1)

Total same store Residential Leasing Concessions granted in the second quarter of 2024 were approximately $3.7 million. The straight-line receivable balance of $7.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first half of 2025.

Same Store Residential Bad Debt

Including 77,054 Same Store Apartment Units

($ in thousands)

 

Income Statement (Rental income):

 

Q2 2024

 

 

Q1 2024

 

 

Q2 2023

 

Bad debts before governmental rental assistance

 

$

8,066

 

 

$

9,141

 

 

$

9,483

 

Governmental rental assistance received

 

(413

)

 

 

(430

)

 

 

(660

)

Bad Debt, Net

 

$

7,653

 

 

$

8,711

 

 

$

8,823

 

 

 

 

 

 

 

 

 

 

 

Bad Debt, Net as a % of Same Store Residential Revenues

 

1.1

%

 

 

1.3

%

 

 

1.3

%

Equity Residential

Second Quarter 2024 vs. Second Quarter 2023

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

 

Apartment

Units

 

Q2 2024

% of

Actual

NOI

 

Q2 2024

Average

Rental

Rate

 

Q2 2024

Weighted

Average

Physical

Occupancy %

 

Q2 2024

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.6

%

 

$

2,933

 

 

 

95.7

%

 

 

11.7

%

 

 

3.3

%

 

 

1.4

%

 

 

4.2

%

 

 

2.5

%

 

 

0.7

%

 

 

0.3

%

Orange County

 

 

3,718

 

 

 

5.1

%

 

 

2,914

 

 

 

95.9

%

 

 

10.8

%

 

 

3.7

%

 

 

3.5

%

 

 

3.8

%

 

 

3.8

%

 

 

0.0

%

 

 

0.2

%

San Diego

 

 

2,878

 

 

 

4.2

%

 

 

3,127

 

 

 

95.9

%

 

 

11.6

%

 

 

4.5

%

 

 

0.8

%

 

 

5.6

%

 

 

4.4

%

 

 

0.1

%

 

 

1.7

%

Subtotal – Southern California

 

20,731

 

 

 

26.9

%

 

 

2,957

 

 

 

95.8

%

 

 

11.5

%

 

 

3.6

%

 

 

1.6

%

 

 

4.3

%

 

 

3.0

%

 

 

0.5

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,554

 

 

 

16.6

%

 

 

2,707

 

 

 

97.0

%

 

 

11.4

%

 

 

4.8

%

 

 

2.4

%

 

 

5.9

%

 

 

4.6

%

 

 

0.2

%

 

 

0.8

%

San Francisco

 

 

11,188

 

 

 

16.1

%

 

 

3,323

 

 

 

96.1

%

 

 

11.6

%

 

 

1.3

%

 

 

(2.0

%)

 

 

2.7

%

 

 

0.8

%

 

 

0.4

%

 

 

0.7

%

New York

 

 

8,536

 

 

 

14.1

%

 

 

4,610

 

 

 

97.4

%

 

 

9.5

%

 

 

3.1

%

 

 

5.0

%

 

 

1.7

%

 

 

2.7

%

 

 

0.3

%

 

 

(0.6

%)

Boston

 

 

7,077

 

 

 

11.3

%

 

 

3,609

 

 

 

96.7

%

 

 

11.4

%

 

 

4.2

%

 

 

5.0

%

 

 

4.0

%

 

 

4.0

%

 

 

0.2

%

 

 

(0.2

%)

Seattle

 

 

9,266

 

 

 

10.3

%

 

 

2,604

 

 

 

96.2

%

 

 

12.4

%

 

 

1.5

%

 

 

4.8

%

 

 

0.2

%

 

 

0.3

%

 

 

1.1

%

 

 

(2.0

%)

Denver

 

 

2,505

 

 

 

2.6

%

 

 

2,428

 

 

 

96.8

%

 

 

14.3

%

 

 

1.0

%

 

 

0.0

%

 

 

1.4

%

 

 

0.6

%

 

 

0.6

%

 

 

(2.8

%)

Other Expansion Markets

 

 

3,197

 

 

 

2.1

%

 

 

1,970

 

 

 

95.1

%

 

 

16.2

%

 

 

(0.7

%)

 

 

5.2

%

 

 

(4.9

%)

 

 

(1.0

%)

 

 

0.2

%

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,054

 

 

 

100.0

%

 

$

3,107

 

 

 

96.4

%

 

 

11.7

%

 

 

3.0

%

 

 

2.6

%

 

 

3.2

%

 

 

2.5

%

 

 

0.5

%

 

 

0.1

%

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

Equity Residential

Second Quarter 2024 vs. First Quarter 2024

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

 

Apartment

Units

 

Q2 2024

% of

Actual

NOI

 

Q2 2024

Average

Rental

Rate

 

Q2 2024

Weighted

Average

Physical

Occupancy %

 

Q2 2024

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.5

%

 

$

2,933

 

 

 

95.7

%

 

 

11.7

%

 

 

0.7

%

 

 

(5.6

%)

 

 

3.5

%

 

 

0.4

%

 

 

0.2

%

 

 

2.1

%

Orange County

 

 

3,718

 

 

 

5.1

%

 

 

2,914

 

 

 

95.9

%

 

 

10.8

%

 

 

0.2

%

 

 

0.2

%

 

 

0.2

%

 

 

0.5

%

 

 

(0.2

%)

 

 

3.4

%

San Diego

 

 

2,878

 

 

 

4.2

%

 

 

3,127

 

 

 

95.9

%

 

 

11.6

%

 

 

0.6

%

 

 

(1.7

%)

 

 

1.3

%

 

 

0.8

%

 

 

(0.2

%)

 

 

3.6

%

Subtotal – Southern California

 

20,731

 

 

 

26.8

%

 

 

2,957

 

 

 

95.8

%

 

 

11.5

%

 

 

0.6

%

 

 

(4.3

%)

 

 

2.5

%

 

 

0.5

%

 

 

0.1

%

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,554

 

 

 

16.4

%

 

 

2,707

 

 

 

97.0

%

 

 

11.4

%

 

 

1.5

%

 

 

0.9

%

 

 

1.7

%

 

 

1.6

%

 

 

(0.1

%)

 

 

4.4

%

San Francisco

 

 

11,188

 

 

 

16.0

%

 

 

3,323

 

 

 

96.1

%

 

 

11.6

%

 

 

0.5

%

 

 

(9.1

%)

 

 

4.9

%

 

 

0.9

%

 

 

(0.4

%)

 

 

2.1

%

New York

 

 

8,536

 

 

 

14.0

%

 

 

4,610

 

 

 

97.4

%

 

 

9.5

%

 

 

0.7

%

 

 

(2.6

%)

 

 

3.2

%

 

 

0.4

%

 

 

0.4

%

 

 

3.0

%

Boston

 

 

7,077

 

 

 

11.2

%

 

 

3,609

 

 

 

96.7

%

 

 

11.4

%

 

 

2.6

%

 

 

(2.6

%)

 

 

4.7

%

 

 

1.5

%

 

 

1.0

%

 

 

4.0

%

Seattle

 

 

9,266

 

 

 

10.2

%

 

 

2,604

 

 

 

96.2

%

 

 

12.4

%

 

 

1.5

%

 

 

2.5

%

 

 

1.1

%

 

 

1.3

%

 

 

0.1

%

 

 

2.7

%

Denver

 

 

2,792

 

 

 

2.9

%

 

 

2,417

 

 

 

96.8

%

 

 

14.0

%

 

 

0.9

%

 

 

(4.0

%)

 

 

3.1

%

 

 

0.3

%

 

 

0.6

%

 

 

3.5

%

Other Expansion Markets

 

 

3,749

 

 

 

2.5

%

 

 

1,963

 

 

 

95.2

%

 

 

16.2

%

 

 

(0.2

%)

 

 

4.5

%

 

 

(3.7

%)

 

 

(0.2

%)

 

 

0.0

%

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,893

 

 

 

100.0

%

 

$

3,096

 

 

 

96.4

%

 

 

11.7

%

 

 

1.0

%

 

 

(2.7

%)

 

 

2.8

%

 

 

0.9

%

 

 

0.1

%

 

 

3.1

%

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

Equity Residential

June YTD 2024 vs. June YTD 2023

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

Markets/Metro Areas

 

Apartment

Units

 

June YTD 24

% of

Actual

NOI

 

June YTD 24

Average

Rental

Rate

 

June YTD 24

Weighted

Average

Physical

Occupancy %

 

June YTD 24

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.5

%

 

$

2,927

 

 

 

95.6

%

 

 

21.3

%

 

 

4.2

%

 

 

1.4

%

 

 

5.5

%

 

 

3.9

%

 

 

0.4

%

 

 

(0.1

%)

Orange County

 

 

3,718

 

 

 

5.2

%

 

 

2,907

 

 

 

96.0

%

 

 

18.2

%

 

 

4.8

%

 

 

3.5

%

 

 

5.2

%

 

 

4.9

%

 

 

(0.1

%)

 

 

0.2

%

San Diego

 

 

2,878

 

 

 

4.3

%

 

 

3,115

 

 

 

96.0

%

 

 

19.6

%

 

 

5.5

%

 

 

0.9

%

 

 

6.9

%

 

 

5.0

%

 

 

0.4

%

 

 

0.0

%

Subtotal – Southern California

 

20,731

 

 

 

27.0

%

 

 

2,950

 

 

 

95.7

%

 

 

20.5

%

 

 

4.5

%

 

 

1.7

%

 

 

5.7

%

 

 

4.2

%

 

 

0.3

%

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,554

 

 

 

16.7

%

 

 

2,686

 

 

 

97.0

%

 

 

18.4

%

 

 

5.1

%

 

 

0.3

%

 

 

7.5

%

 

 

4.8

%

 

 

0.3

%

 

 

0.5

%

San Francisco

 

 

11,188

 

 

 

15.9

%

 

 

3,308

 

 

 

96.3

%

 

 

21.1

%

 

 

1.7

%

 

 

0.0

%

 

 

2.4

%

 

 

1.1

%

 

 

0.6

%

 

 

0.8

%

New York

 

 

8,536

 

 

 

14.1

%

 

 

4,601

 

 

 

97.2

%

 

 

16.1

%

 

 

3.5

%

 

 

4.1

%

 

 

3.1

%

 

 

3.2

%

 

 

0.3

%

 

 

(1.5

%)

Boston

 

 

7,077

 

 

 

11.2

%

 

 

3,583

 

 

 

96.2

%

 

 

18.8

%

 

 

4.5

%

 

 

1.2

%

 

 

5.9

%

 

 

4.3

%

 

 

0.2

%

 

 

(0.8

%)

Seattle

 

 

9,266

 

 

 

10.4

%

 

 

2,587

 

 

 

96.2

%

 

 

22.2

%

 

 

1.0

%

 

 

4.9

%

 

 

(0.6

%)

 

 

(0.1

%)

 

 

1.1

%

 

 

(3.3

%)

Denver

 

 

2,505

 

 

 

2.6

%

 

 

2,421

 

 

 

96.5

%

 

 

24.4

%

 

 

1.1

%

 

 

(0.2

%)

 

 

1.7

%

 

 

1.1

%

 

 

0.2

%

 

 

(3.8

%)

Other Expansion Markets

 

 

3,197

 

 

 

2.1

%

 

 

1,972

 

 

 

95.3

%

 

 

29.5

%

 

 

0.1

%

 

 

0.3

%

 

 

0.0

%

 

 

(0.5

%)

 

 

0.4

%

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,054

 

 

 

100.0

%

 

$

3,093

 

 

 

96.3

%

 

 

20.2

%

 

 

3.4

%

 

 

1.9

%

 

 

4.2

%

 

 

3.0

%

 

 

0.4

%

 

 

(0.5

%)

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 77,054 Same Store Apartment Units

 

 

 

New Lease Change (1)

 

Renewal Rate Achieved (1)

 

Blended Rate (1)

Markets/Metro Areas

 

Q2 2024

 

Q1 2024

 

Q2 2024

 

Q1 2024

 

Q2 2024

 

Q1 2024

Southern California

 

 

(2.4

%)

 

 

(3.6

%)

 

 

4.5

%

 

 

4.4

%

 

 

1.5

%

 

 

0.5

%

Washington, D.C.

 

 

4.9

%

 

 

1.6

%

 

 

6.7

%

 

 

5.7

%

 

 

5.9

%

 

 

4.0

%

San Francisco

 

 

0.4

%

 

 

(1.1

%)

 

 

5.1

%

 

 

4.1

%

 

 

2.9

%

 

 

1.7

%

New York

 

 

3.5

%

 

 

(1.1

%)

 

 

4.4

%

 

 

4.1

%

 

 

4.0

%

 

 

2.2

%

Boston

 

 

0.3

%

 

 

(3.4

%)

 

 

5.0

%

 

 

5.2

%

 

 

3.0

%

 

 

1.0

%

Seattle

 

 

0.5

%

 

 

(1.2

%)

 

 

5.3

%

 

 

6.1

%

 

 

3.3

%

 

 

2.8

%

Subtotal – Established Markets

 

 

0.9

%

 

 

(1.8

%)

 

 

5.1

%

 

 

4.8

%

 

 

3.3

%

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

(4.6

%)

 

 

(6.3

%)

 

 

3.9

%

 

 

4.3

%

 

 

(0.4

%)

 

 

(2.0

%)

Other Expansion Markets

 

 

(12.5

%)

 

 

(8.8

%)

 

 

2.7

%

 

 

4.1

%

 

 

(6.2

%)

 

 

(3.8

%)

Subtotal – Expansion Markets

 

 

(9.0

%)

 

 

(7.7

%)

 

 

3.3

%

 

 

4.2

%

 

 

(3.5

%)

 

 

(2.9

%)

Total

 

 

0.2

%

 

 

(2.2

%)

 

 

5.0

%

 

 

4.7

%

 

 

2.9

%

 

 

1.6

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions.

Equity Residential

Second Quarter 2024 vs. Second Quarter 2023

Total Same Store Operating Expenses Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

Q2 2024

 

Q2 2023

 

$

Change

 

%

Change

 

% of

Q2 2024

Operating

Expenses

Real estate taxes

 

$

93,565

 

 

$

90,629

 

 

$

2,936

 

 

 

3.2

%

 

 

41.7

%

On-site payroll

 

 

42,531

 

 

 

42,507

 

 

 

24

 

 

 

0.1

%

 

 

18.9

%

Utilities

 

 

32,340

 

 

 

31,537

 

 

 

803

 

 

 

2.5

%

 

 

14.4

%

Repairs and maintenance

 

 

31,556

 

 

 

31,194

 

 

 

362

 

 

 

1.2

%

 

 

14.1

%

Insurance

 

 

9,307

 

 

 

8,427

 

 

 

880

 

 

 

10.4

%

 

 

4.1

%

Leasing and advertising

 

 

2,691

 

 

 

2,535

 

 

 

156

 

 

 

6.2

%

 

 

1.2

%

Other on-site operating expenses

 

 

12,535

 

 

 

11,852

 

 

 

683

 

 

 

5.8

%

 

 

5.6

%

Total Same Store Operating Expenses (2)

 

$

224,525

 

 

$

218,681

 

 

$

5,844

 

 

 

2.7

%

 

 

100.0

%

 

June YTD 2024 vs. June YTD 2023

Total Same Store Operating Expenses Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

YTD 2024

 

YTD 2023

 

$

Change (1)

 

%

Change

 

% of

YTD 2024

Operating

Expenses

Real estate taxes

 

$

187,555

 

 

$

181,258

 

 

$

6,297

 

 

 

3.5

%

 

 

41.2

%

On-site payroll

 

 

85,454

 

 

 

85,116

 

 

 

338

 

 

 

0.4

%

 

 

18.8

%

Utilities

 

 

69,366

 

 

 

70,530

 

 

 

(1,164

)

 

 

(1.7

%)

 

 

15.2

%

Repairs and maintenance

 

 

61,242

 

 

 

61,555

 

 

 

(313

)

 

 

(0.5

%)

 

 

13.4

%

Insurance

 

 

18,614

 

 

 

16,853

 

 

 

1,761

 

 

 

10.4

%

 

 

4.1

%

Leasing and advertising

 

 

5,052

 

 

 

5,111

 

 

 

(59

)

 

 

(1.2

%)

 

 

1.1

%

Other on-site operating expenses

 

 

28,154

 

 

 

26,298

 

 

 

1,856

 

 

 

7.1

%

 

 

6.2

%

Total Same Store Operating Expenses (2)

 

$

455,437

 

 

$

446,721

 

 

$

8,716

 

 

 

2.0

%

 

 

100.0

%

 

(1)

The year-over-year changes were primarily driven by the following factors:

 

Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

 

On-site payroll – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives.

 

Utilities – Decrease primarily driven by lower commodity prices for gas and electric.

 

Repairs and maintenance – Decrease primarily driven by lower resident Turnover compared to the same period of 2023 and a benefit from a relatively easy comparable period.

 

Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

 

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

 

(2)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential

Debt Summary as of June 30, 2024

($ in thousands)

 

 

 

Debt

Balances (1)

 

% of Total

 

Weighted

Average

Rates (1)

 

Weighted

Average

Maturities

(years)

Secured

 

$

1,634,838

 

 

 

22.8

%

 

 

3.86

%

 

 

7.4

 

Unsecured

 

 

5,522,345

 

 

 

77.2

%

 

 

3.63

%

 

 

8.0

 

Total

 

$

7,157,183

 

 

 

100.0

%

 

 

3.69

%

 

 

7.9

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,399,844

 

 

 

19.5

%

 

 

3.89

%

 

 

6.9

 

Unsecured – Public

 

 

5,351,461

 

 

 

74.8

%

 

 

3.52

%

 

 

8.3

 

Fixed Rate Debt

 

 

6,751,305

 

 

 

94.3

%

 

 

3.60

%

 

 

8.0

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Tax Exempt

 

 

234,994

 

 

 

3.3

%

 

 

3.69

%

 

 

10.1

 

Unsecured – Revolving Credit Facility

 

 

 

 

 

 

 

 

 

 

 

3.3

 

Unsecured – Commercial Paper Program (2)

 

 

170,884

 

 

 

2.4

%

 

 

5.59

%

 

 

 

Floating Rate Debt

 

 

405,878

 

 

 

5.7

%

 

 

4.75

%

 

 

6.0

 

Total

 

$

7,157,183

 

 

 

100.0

%

 

 

3.69

%

 

 

7.9

 

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

At June 30, 2024, the weighted average maturity of commercial paper outstanding was 5 days. The weighted average amount outstanding for the six months ended June 30, 2024 was approximately $300.1 million.

 

Note: The Company capitalized interest of approximately $6.9 million and $7.0 million during the six months ended June 30, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $3.6 million during the quarters ended June 30, 2024 and 2023, respectively.

Equity Residential

Debt Maturity Schedule as of June 30, 2024

($ in thousands)

 

Year

 

Fixed

Rate

 

Floating

Rate

 

Total

 

% of Total

 

Weighted

Average Coupons

on Fixed

Rate Debt (1)

 

Weighted

Average

Coupons on

Total Debt (1)

2024

 

$

 

 

$

177,200

 

(2)

$

177,200

 

 

 

2.5

%

 

 

 

 

 

5.48

%

2025

 

 

450,000

 

 

 

8,100

 

 

 

458,100

 

 

 

6.3

%

 

 

3.38

%

 

 

3.39

%

2026

 

 

592,025

 

 

 

9,000

 

 

 

601,025

 

 

 

8.3

%

 

 

3.58

%

 

 

3.59

%

2027

 

 

400,000

 

 

 

9,800

 

 

 

409,800

 

 

 

5.7

%

 

 

3.25

%

 

 

3.27

%

2028

 

 

900,000

 

 

 

10,700

 

 

 

910,700

 

 

 

12.6

%

 

 

3.79

%

 

 

3.79

%

2029

 

 

888,120

 

 

 

11,500

 

 

 

899,620

 

 

 

12.4

%

 

 

3.30

%

 

 

3.31

%

2030

 

 

1,148,462

 

 

 

12,700

 

 

 

1,161,162

 

 

 

16.1

%

 

 

2.53

%

 

 

2.55

%

2031

 

 

528,500

 

 

 

39,800

 

 

 

568,300

 

 

 

7.9

%

 

 

1.94

%

 

 

2.08

%

2032

 

 

 

 

 

28,000

 

 

 

28,000

 

 

 

0.4

%

 

 

 

 

 

4.20

%

2033

 

 

550,000

 

 

 

2,300

 

 

 

552,300

 

 

 

7.6

%

 

 

5.22

%

 

 

5.22

%

2034+

 

 

1,350,850

 

 

 

108,600

 

 

 

1,459,450

 

 

 

20.2

%

 

 

4.39

%

 

 

4.30

%

Subtotal

 

 

6,807,957

 

 

 

417,700

 

 

 

7,225,657

 

 

 

100.0

%

 

 

3.53

%

 

 

3.58

%

Deferred Financing Costs and Unamortized (Discount)

 

 

(56,652

)

 

 

(11,822

)

 

 

(68,474

)

 

N/A

 

 

N/A

 

 

N/A

 

Total

 

$

6,751,305

 

 

$

405,878

 

 

$

7,157,183

 

 

 

100.0

%

 

 

3.53

%

 

 

3.58

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

Includes $171.0 million in principal outstanding on the Company's Commercial Paper Program.

Equity Residential

Selected Unsecured Public Debt Covenants

 

 

 

June 30,

 

March 31,

 

 

2024

 

2024

Debt to Adjusted Total Assets (not to exceed 60%)

 

25.6%

 

25.8%

 

 

 

 

 

Secured Debt to Adjusted Total Assets (not to exceed 40%)

 

6.7%

 

6.7%

 

 

 

 

 

Consolidated Income Available for Debt Service to

 

Maximum Annual Service Charges

(must be at least 1.5 to 1)

 

6.68

 

6.41

 

 

 

 

 

Total Unencumbered Assets to Unsecured Debt

 

(must be at least 125%)

 

534.8%

 

528.1%

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

 

 

 

June 30,

 

March 31,

 

 

2024

 

2024

Total debt to Normalized EBITDAre

 

3.96x

 

4.01x

 

 

 

 

 

Net debt to Normalized EBITDAre

 

3.92x

 

3.97x

 

 

 

 

 

Unencumbered NOI as a % of total NOI

 

89.6%

 

89.6%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of June 30, 2024

(Amounts in thousands except for share/unit and per share amounts)

 

Secured Debt

 

 

 

 

 

 

 

$

1,634,838

 

 

 

22.8

%

 

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

5,522,345

 

 

 

77.2

%

 

 

 

Total Debt

 

 

 

 

 

 

 

 

7,157,183

 

 

 

100.0

%

 

 

20.9

%

Common Shares (includes Restricted Shares)

 

 

379,086,882

 

 

 

97.0

%

 

 

 

 

 

 

 

 

 

Units (includes OP Units and Restricted Units)

 

 

11,663,842

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

Total Shares and Units

 

 

390,750,724

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

Common Share Price at June 30, 2024

 

$

69.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,094,655

 

 

 

99.9

%

 

 

 

Perpetual Preferred Equity (see below)

 

 

 

 

 

 

 

 

17,155

 

 

 

0.1

%

 

 

 

Total Equity

 

 

 

 

 

 

 

 

27,111,810

 

 

 

100.0

%

 

 

79.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

 

 

 

 

 

 

$

34,268,993

 

 

 

 

 

 

100.0

%

 

Perpetual Preferred Equity as of June 30, 2024

(Amounts in thousands except for share and per share amounts)

 

Series

 

Call Date

 

Outstanding

Shares

 

 

Liquidation

Value

 

 

Annual

Dividend

Per Share

 

 

Annual

Dividend

Amount

 

Preferred Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.29% Series K

 

12/10/26

 

 

343,100

 

 

$

17,155

 

 

$

4.145

 

 

$

1,422

 

 

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

 

 

June YTD 2024

 

June YTD 2023

 

Q2 2024

 

Q2 2023

Weighted Average Amounts Outstanding for Net Income Purposes:

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

378,699,050

 

 

 

378,492,171

 

 

 

378,578,395

 

 

 

378,641,804

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

 

 

 

 

- OP Units

 

 

10,680,864

 

 

 

11,449,790

 

 

 

10,692,382

 

 

 

11,390,569

 

- long-term compensation shares/units

 

 

1,167,742

 

 

 

1,121,169

 

 

 

1,271,160

 

 

 

1,155,127

 

Total Common Shares and Units - diluted

 

 

390,547,656

 

 

 

391,063,130

 

 

 

390,541,937

 

 

 

391,187,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

378,699,050

 

 

 

378,492,171

 

 

 

378,578,395

 

 

 

378,641,804

 

OP Units - basic

 

 

10,680,864

 

 

 

11,449,790